- Sweden’s economy grows 0.2% in Q4 2024, showing a modest recovery.
- Germany’s Economic Warning Day emphasizes the need for policy action to support SMEs.
- Spain leads eurozone growth with a 3.2% expansion in 2024 and strong fourth-quarter performance.
Sweden experienced modest economic growth in Q4 2024, with a 0.2% increase compared to the previous quarter, and a 1.1% year-over-year expansion. This follows a contraction in 2023, suggesting a gradual recovery.
In contrast, Germany’s economy faces critical challenges, highlighted by the nationwide Economic Warning Day. The event aims to call attention to the needs of small and medium-sized enterprises (SMEs), urging policymakers to focus on improving their competitiveness.
Spain’s Strong Economic Growth in 2024 Amid Eurozone Challenges
Spain’s economy has continued to outpace other eurozone nations, registering a robust 3.2% growth in 2024. This performance contrasts with the slower recovery observed in other European economies. The country’s fourth-quarter GDP growth of 0.8% reflects its resilience, which has been attributed to a combination of domestic consumption and external demand.
In addition to strong overall GDP growth, Spain has seen significant improvements in productivity, with an annual increase in productivity per hour of 0.7%. This reflects the efficiency of the workforce, which has been key to sustaining economic expansion throughout the year. The country’s export-driven growth also continues to provide a solid foundation for economic stability.
Worker compensation in Spain has also experienced positive growth, with compensation per worker rising by around 5% in recent quarters. This increase in wages is helping to restore the purchasing power of Spanish employees, further contributing to domestic demand and consumption. These positive trends are seen as critical to Spain’s economic success in the face of broader regional challenges.
While Spain leads the eurozone in growth, it remains cautious about future uncertainties, including potential geopolitical risks and global economic pressures. The government’s emphasis on balanced growth and continued investment in productivity and wages suggests Spain will aim to maintain its positive trajectory in the coming years.
The economic landscape in Europe in Q4 2024 shows contrasting outcomes: Sweden is making gradual strides in recovery, Germany is grappling with competitive challenges for SMEs, and Spain continues to be a leader in growth within the eurozone.
“Spain’s Ministry of Economy emphasized that the country continues to lead eurozone growth, with its GDP expansion four times greater than the eurozone average.”
